FAQClosing process information
How should I take title to the property? (a.k.a. Vesting)
Sole Ownership: If you’re a single person buying the property for yourself, please mark “single” on the worksheet.
Tenants in Common: This tenancy allows for split percentages of ownership, i.e. Jane Doe owns 30% and John Doe owns 70%
Joint Tenants: This tenancy has rights of survivorship and equates to equal percentage of ownership
Tenants by the entirety: This tenancy is specific to married parties, and is the best possible tenancy
This is just some basic information on the common forms of ownership. We strongly encourage you to do your own research. If you have additional questions, please let us know.
What is title insurance? What type of coverage is right for you?
Lender’s title insurance and owner’s title insurance are the two types of title insurance that are typically issued when purchasing a home. Your lender will require you to purchase a lender’s title insurance policy to protect the bank’s interest in the property.
You also have the option to purchase an owner’s title insurance policy to protect you from defects in the title or from claims against your property from any parties who owned or had claim to the property in the past.
When purchasing an owner’s policy you must also choose whether you would like the basic or enhanced coverage. We have included a basic outline that goes over what issues are covered by the different levels of coverage. The attached (Page 4) chart provides an overview and is not meant to include every possible defect that could occur.
Survey Coverage & Obtaining a Survey on your property
A survey ensures that the boundaries of your new property are not encroached upon. Purchasing a survey also provides added coverage for your new home. In most cases surveys are optional; however, sometimes lenders may make requirements as a condition to loan approval. Lenders will not require a survey when you purchase a condominium.
The two most common types of survey are “location” and “boundary.” A location survey shows the lot boundaries and shows the locations of other buildings and structures affecting the property. It shows the boundary line and any improvements on a survey map. A boundary survey is required in order to set property corners and may be necessary for various purposes (if you are planning on building a fence, building a garage, etc.) A boundary survey involves finding existing property corners and location improvements on the property.
We have found CRES to be a reliable company and generally recommend them as our preferred surveyor. CRES offers competitive pricing. You may either select the surveyor provided, or, if you prefer, specify your own. If you indicate that you would like a survey ordered but do not select a specific surveyor we will place the order with CRES.
How much do I need to bring to closing – Final Closing Costs
– as soon as we receive the final numbers, we will contact you to provide you with the amount needed for closing and/or for a review of all costs up front.
Do I wire my funds for closing or obtain a cashiers check
– With all the changes to our industry, one major change is the consideration of good funds at closing. Cashiers checks have always been viewed as like “cash” at closing, well now the ruling is that cashiers checks are not necessarily considered “good funds” until they go back to the issuing back to clear, just like a personal check. So many are requiring wired funds at closing of buyer’s cash requirements.
Potomac Title Group is following these industry trends and requirements as well and respectively ask that all funds be wired for closing. We will provide wiring instructions with our welcome packet and of course at any request.